House Judiciary Considers Taxes on Digital Goods

The House Judiciary Committee's Subcommittee on Courts, Commercial and Administrative Law held a hearing on a bill that would define limits on taxes for virtual goods and services on the Internet.

Full Committee Chairman Lamar Smith (R-TX) sponsored the proposed legislation, known as the “Digital Goods and Services Tax Fairness Act of 2011.” The measure aims to “promote neutrality, simplicity, and fairness in the taxation of digital goods and digital services.” The legislation would restrict taxing authority to the jurisdiction of the customer’s tax address. Witnesses Robert Atkinson, President of the, D.C.-based Information Technology & Innovation Foundation (ITIF), and James Eads, Jr., Director of Public Affairs for Ryan, LLC, supported the proposed legislation.